Sole trader tax calculator (Australia)
Estimate the income tax and Medicare levy on your ABN profit, and see how much to set aside each week. Built for Australian sole traders using current ATO resident rates, in AUD, for the FY 2026–27 financial year.
Your year
Enter whole dollars, excluding GST.
Everything you invoiced or were paid for the year.
Tools, software, business kilometres, insurance and so on.
Gross pay from a job, if you have one.
PAYG withheld by an employer, or instalments already paid.
Your estimate
Estimated tax for the year
$16,388
20.5% of $80,000 taxable income
- Business profit
- $80,000
- Taxable income
- $80,000
- Income tax (after offset)
- $14,788
- Low income tax offset
- − $0
- Medicare levy (2%)
- $1,600
- Estimated amount owing
- $16,388
Set aside about $315 a week to cover this estimate.
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Start freeIndicative only. Excludes GST, HELP/HECS, the Medicare levy surcharge and other offsets.
How this estimate is worked out
- Business profit is your ABN income minus deductible business expenses.
- Taxable income adds any salary or wages from a job to that profit, because sole traders are taxed as individuals.
- Income tax applies the FY 2026–27 resident rates in the table below, less the low income tax offset if you qualify.
- Medicare levy of 2% is added on top.
- Tax already withheld by an employer or paid as instalments is subtracted to show what you may still owe.
- Weekly set-aside spreads the total tax across 52 weeks, so you can move a steady amount out of each week's earnings.
Worked example
A sole trader earns $80,000 through their ABN, spends $12,000 on deductible business costs and has no other job. Their profit and taxable income is $68,000. The estimated tax, including the Medicare levy, is $12,548 (18.5%), or about $241 to put aside each week.
When to use it
- Starting out on an ABN and working out how much of each payment to keep for tax.
- Running a side business alongside a job, where your wages already have tax taken out.
- Checking mid-year whether your savings will cover the tax bill at 30 June.
- Seeing how extra deductible expenses change what you might owe.
An accurate estimate needs accurate records
This calculator is only as good as the income and expense figures you put in. Indi tracks both as you go — receipts, invoices, business kilometres — so at tax time the numbers are already there.
- Income and expenses in one place
- Receipts attached
- Tax Pack export
Want the detail? How Indi helps Australian sole traders stay ready for tax time
Australian resident tax rates, FY 2026–27
Sole traders are taxed at individual rates on total taxable income. The Medicare levy of 2% applies on top for most residents.
Sole trader tax questions
A sole trader is taxed as an individual. You add your business profit (income less deductible expenses) to any other income, then individual resident tax rates and the Medicare levy apply to that total. There is no separate company tax rate.
Many sole traders set aside roughly 25–30% of every payment, but the right number depends on your profit and any tax already withheld from a job. Use the weekly set-aside figure above as a starting point and review it as your income changes.
You must register for GST once your business turnover reaches $75,000 in a 12-month period (or $150,000 for non-profits). GST is separate from income tax and is not included in this calculator.
Expenses directly related to earning your income — tools, software, phone and internet at the work-use percentage, business kilometres, insurance, accounting fees and more. You need records for everything you claim, which is exactly what Indi keeps for you.
It is an indicative estimate only. It uses resident rates, the low income tax offset and the Medicare levy, and it excludes GST, the Medicare levy surcharge, HELP/HECS debts, PAYG instalments and other offsets. Confirm your position with a registered tax agent.
About this calculator. Indi helps you organise your Sole Trader records — it is not accounting software and does not give tax advice or lodge your return. Tax rates, thresholds and offsets are set by the Australian Taxation Office; always confirm your position with a registered tax agent or the ATO.